Financial overview Essay Example | Topics and Well Written Essays - 250 words

Financial overview - Essay Example For this purpose, the raw material will be collected on a donation basis from the general public through online and off line advertisement, and designers and artists would be recruited from the target customers to convert that raw material into products. Therefore, the initial investment on the collection of raw material would be negligible, and most of the investment would be spent on the setting up of retail and flag shops, and the development of websites and other online platforms for interaction between the customers and the business owner. The business is aimed to be launched in three cities simultaneously. The overall budget is estimated to be around $50,000. The following is the chart representing the breakdown of the budget for the venture: The fluctuation in the exchange rate of the currency as regards foreign currency is a major determinant when choosing international markets for the launch and operation of businesses. The Japanese market is quite volatile in this regard (Reuters, 2011); it is determined that the Japanese Yen has gone from  ¥76 to  ¥84 in relation to U.S. dollar in the past six months this year (Reuters, 2011). This is a great increase on the price of the dollar, of more than ten percent (Reuters, 2011), and is testament of a relatively unstable business environment. Multi national companies hesitate to invest in a market with currency values fluctuating in the values of more than one percent (Reuters, 2011). To counter this risk of business failure, GAAFE would wait till the launch time coincides with the highest currency value so that maximum profits could be attained. If a low value